ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Economic market structures can be grouped into four categories: perfect competition, monopolistic competition, oligopoly, and monopoly. The categories differ because of the following characteristics: The number of producers is many in perfect and monopolistic competition, few in oligopoly, and one in monopoly.

Detailed explanation-2: -In any market transaction between a seller and a buyer, the price of the good or service is determined by supply and demand in a market. Supply and demand are in turn determined by technology and the conditions under which people operate.

Detailed explanation-3: -Definition of Competition In economics, it is defined as an activity involving two or more firms, in which each firm tries to get people to buy its own goods in preference to the other firm’s goods. For example, by offering different products, better deals or by other means.

Detailed explanation-4: -Price is dependent on the interaction between demand and supply components of a market. Demand and supply represent the willingness of consumers and producers to engage in buying and selling. An exchange of a product takes place when buyers and sellers can agree upon a price.